1

 

 

Macy’s, Inc. Reports Second Quarter 2022 Results and Updates Guidance

Quarterly net sales and earnings exceeded expectations

Comparable sales down 1.5% on an owned basis and down 1.6% on an owned-plus-licensed basis

Diluted EPS of $0.99 and Adjusted diluted EPS of $1.00

Lowers full-year sales and EPS guidance to incorporate risks related to increased macroeconomic pressures

NEW YORK—August 23, 2022— Macy’s, Inc. (NYSE: M) today reported financial results for the second quarter of 2022 and updated its annual guidance.

 

“During the second quarter, we delivered solid results, despite the challenging environment,” said Jeff Gennette, chairman and chief executive officer of Macy’s, Inc. “Our teams have consistently responded to the dynamic landscape with disciplined, data-driven actions to ensure the health and stability of our business. We believe that we are well positioned to respond to changing consumer behaviors. Despite inflationary pressures, consumers continued to shop Macy's as a style source and leading gifting destination. Additionally, Bloomingdale's and Bluemercury captured demand for luxury brands, resulting in both nameplates outperforming in the quarter."

 

“Over the past two years, our Polaris strategy has made us faster and more agile, which has been essential to navigate rapidly changing consumer trends and macro conditions. We expect to come out of this uncertain period in a strong position with a healthy balance sheet, new capabilities and a talented team ready to capture renewed demand,” Gennette continued.

 

Second Quarter Highlights

Comparisons are to second quarter 2021 unless noted otherwise. Comparisons to 2019 are provided, where appropriate, to benchmark performance given the impact of the pandemic.

 

 

Diluted earnings per share of $0.99 and Adjusted diluted earnings per share of $1.00.

 

o

This compares to diluted earnings per share of $1.08 and Adjusted diluted earnings per share of $1.29 in the second quarter of 2021.

 

o

This compares to diluted earnings per share and Adjusted diluted earnings per share of $0.28 in the second quarter of 2019.

 

 

Comparable sales down 1.5% on an owned basis and down 1.6% on an owned-plus-licensed basis; up 4.3% and 4.4%, respectively, versus the second quarter of 2019.

 

 

Digital sales decreased 5% year-over-year while increasing 37% versus the second quarter of 2019.

 

o

Digital penetration was 30% of net sales, a 2-percentage point decline from the second quarter of 2021, but 8-percentage points higher than the second quarter of 2019.

 

 

Highlights of the company's nameplates include:

 

o

Macy’s comparable sales were down 2.9% on an owned basis and down 2.8%, on an owned-plus-licensed basis.

 


2

 

 

43.9 million active customers shopped the Macy’s brand, on a trailing twelve-month basis, a 7% increase compared to the prior year.

 

Star Rewards program members made up approximately 70% of the total Macy's brand owned-plus-licensed sales on a trailing twelve-month basis, up approximately 5 percentage points versus the prior year.

 

The company continued to see strength in occasion-based categories, including career and tailored sportswear, fragrances, shoes, dresses and luggage.

 

o

Bloomingdale’s comparable sales on an owned basis were up 8.8% and on an owned-plus-licensed basis were up 5.8%.

 

4.0 million active customers shopped the Bloomingdale’s brand, on a trailing twelve-month basis, a 14% increase over the prior year.

 

Results were driven by strength across women’s, men’s and kid’s contemporary and dressy apparel as well as luggage.

 

o

Bluemercury comparable sales were up 7.6% on an owned and owned-plus-licensed basis.

 

Approximately 700,000 active customers shopped the Bluemercury brand, on a trailing twelve-month basis, a 9% increase over the prior year.

 

 

Inventory turnover, on a trailing twelve-month basis, was relatively flat to 2021 and improved 15% over 2019.

 

o

Inventory was up 7% year-over-year and down 8% versus 2019, reflecting disciplined inventory management in an environment of continued supply chain volatility. Where it had flexibility, the company cut receipts to manage inventory levels in line with consumer demand. However, in certain categories inventory levels remain elevated due to reduced year-over-year sell-throughs since Father's Day driven by the industry-wide levels of excess inventory and a slowdown in consumer discretionary spend.

 

o

The company is targeting appropriate inventory levels by the end of the year and will continue to flow fresh product in those categories in which customers are signaling demand. Simultaneously, the company is taking the required markdowns to clear aged inventory, in seasonal goods, private brand merchandise and pandemic-related categories, such as active, casual sportswear, sleepwear, and soft home.

 

 

Gross margin for the quarter was 38.9%, down from 40.6% in the second quarter of 2021.

 

o

Merchandise margin degradation was driven by a year-over-year increase in permanent markdowns within the Macy’s brand, largely driven by pandemic-related categories, seasonal goods and private brand merchandise.  

 

o

Delivery expense as a percent of net sales increased 10 basis points, driven largely by higher fuel costs.

 

 

Selling, general and administrative (“SG&A”) expense of $1.98 billion, a $83 million increase.

 

o

SG&A expense as a percent of sales was 35.4%, a deterioration of 180 basis points compared to the second quarter of 2021 and an improvement of 390 basis points compared to the second quarter of 2019. The improvement versus 2019 is a result of the cost savings achieved through the 2020 Polaris restructurings.

 

o

The prior year quarter benefited from a significant number of open positions due to the tight labor market. The positions have since largely been filled.  

 

o

As of May 1, 2022, all store and distribution colleagues are now at a minimum wage base of $15 or above. The company is adjusting colleague compensation to remain a competitive and attractive employer of choice, while simultaneously remaining disciplined in its SG&A productivity efforts.

 

 

Net credit card revenue of $204 million, up $7 million.

 

o

Represented 3.6% of sales, 10 basis points higher than the prior year period.

 


3

 

 

 

o

Performance driven by better-than-expected bad debt levels, larger balances within the portfolio as well as higher than expected spend on co-brand credit cards.  

 

Financial Highlights

All amounts in millions except percentages and per share figures

Second Quarter

 

2022

2021

Net sales

$5,600

 

$5,647

Comparable Sales

Owned

(1.5%)

 

 

Owned plus licensed

(1.6%)

 

 

Net Income

$275

 

$345

Earnings before interest, taxes, depreciation and amortization (EBITDA)

$614

 

$753

Diluted earnings per share (EPS)

$0.99

 

$1.08

 

Adjusted Net income

$277

 

$411

 

Adjusted EBITDA

$616

 

$836

 

Adjusted Diluted EPS

$1.00

 

$1.29

 

 

2022 Guidance

The company's lower outlook for the remainder of the year incorporates the risk it sees in the continued deterioration of consumer discretionary spending in some of its categories and the level of inventory within the industry, as well as risks associated with a more pronounced macro downturn. This outlook reflects a careful view of the impacts of the pressures faced by the consumer and those placed on the business given the weakening macroenvironment. Additionally, the company's outlook incorporates the markdowns and promotions it anticipates needing to liquidate aged inventory and further reduce the merchandise category stock to sales imbalances by the end of the year. The full update to guidance can be found in the presentation posted to macysinc.com/investors.

 

 

Guidance as of

August 23, 2022

Guidance as of

May 26, 2022

Net sales

$24,340 million to $24,580 million

$24,460 million to $24,700 million

 

Adjusted EBITDA as a percent of sales

Approximately 10.5%

11.2% - 11.7%

Adjusted diluted earnings per share*

$4.00 - $4.20

$4.53 - $4.95

* Adjusted diluted EPS does not consider the impact of any potential future share repurchases associated with the company’s current share repurchase authorization.

 

Conference Call and Webcasts

A webcast of Macy's, Inc.’s call with analysts and investors to report its second quarter 2022 sales and earnings will be held today (August 23, 2022) at 8:00 a.m. EDT.  Macy’s, Inc.’s webcast, along with the associated presentation, is accessible to the media and general public via the company's website at www.macysinc.com/investors. Analysts and investors may call in on 1-800-458-4121, passcode 7131743. A replay of the conference call and slides can be accessed on the website or by calling 1-888-203-1112 (same passcode) about two hours after the conclusion of the call. Additional information on Macy’s, Inc., including past news releases, is available at www.macysinc.com/pressroom.

 


4

 

 

 

Important Information Regarding Financial Measures

Please see the final pages of this news release for important information regarding the calculation of the company’s non-GAAP financial measures.

 

About Macy’s, Inc.

At Macy’s, Inc. (NYSE: M), we are a trusted source for quality brands at great values from off-price to luxury. Across our iconic nameplates, including Macy’s, Bloomingdale’s and Bluemercury, we help our customers express their unique style and celebrate special moments, big and small. Headquartered in New York City, we operate one of retail’s largest e-commerce businesses integrated with a nationwide footprint to deliver the most convenient and seamless shopping experience. Our purpose is to create a brighter future with bold representation – so we can realize the full potential of every one of us. For more information, visit macysinc.com.

 

Forward-Looking Statements

All statements in this press release that are not statements of historical fact are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based upon the current beliefs and expectations of Macy’s management and are subject to significant risks and uncertainties. Actual results could differ materially from those expressed in or implied by the forward-looking statements contained in this release because of a variety of factors, including the effects of the COVID-19 pandemic on Macy's customer demand and supply chain, as well as its consolidated results of operation, financial position and cash flows, Macy’s ability to successfully implement its Polaris strategy, including the ability to realize the anticipated benefits within the expected time frame or at all, conditions to, or changes in the timing of proposed real estate and other transactions, prevailing interest rates and non-recurring charges, the effect of potential changes to trade policies, store closings, competitive pressures from specialty stores, general merchandise stores, off-price and discount stores, manufacturers’ outlets, the Internet and catalogs and general consumer spending levels, including the impact of the availability and level of consumer debt, possible systems failures and/or security breaches, the potential for the incurrence of charges in connection with the impairment of intangible assets, including goodwill, Macy’s reliance on foreign sources of production, including risks related to the disruption of imports by labor disputes, regional or global health pandemics, and regional political and economic conditions, the effect of weather, inflation, labor shortages, the amount and timing of future dividends and share repurchases and other factors identified in documents filed by the company with the Securities and Exchange Commission, including under the captions “Forward-Looking Statements” and “Risk Factors” in the company’s Annual Report on Form 10-K for the year ended January 29, 2022. Macy’s disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.


Media - Chris Grams

media@macys.com

 

Investors - Mike McGuire

investors@macys.com

 

 

 

 

 

 

 

 

 


 


5

 

 

MACY’S, INC.

Consolidated Statements of Income (Unaudited) (Note 1)

(All amounts in millions except percentages and per share figures)

 

 

 

13 Weeks Ended

July 30, 2022

 

 

13 Weeks Ended

July 31, 2021

 

 

 

 

 

 

 

% to

 

 

 

 

 

 

% to

 

 

 

$

 

 

Net sales

 

 

$

 

 

Net sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

5,600

 

 

 

 

 

 

$

5,647

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit card revenues, net

 

 

204

 

 

 

3.6

%

 

 

197

 

 

 

3.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

 

(3,422

)

 

 

(61.1

%)

 

 

(3,353

)

 

 

(59.4

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

 

(1,981

)

 

 

(35.4

%)

 

 

(1,898

)

 

 

(33.6

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gains on sale of real estate

 

 

 

 

 

0.0

%

 

 

6

 

 

 

0.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Impairment, restructuring and other costs

 

 

(2

)

 

 

(0.0

%)

 

 

(2

)

 

 

(0.0

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

 

399

 

 

 

7.1

%

 

 

597

 

 

 

10.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefit plan income, net

 

 

7

 

 

 

 

 

 

 

17

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Settlement charges

 

 

 

 

 

 

 

 

 

(81

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

(42

)

 

 

 

 

 

 

(80

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Losses on early retirement of debt

 

 

 

 

 

 

 

 

 

(3

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

364

 

 

 

 

 

 

 

450

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Federal, state and local income tax expense (Note 2)

 

 

(89

)

 

 

 

 

 

 

(105

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

275

 

 

 

 

 

 

$

345

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

1.01

 

 

 

 

 

 

$

1.11

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share

 

$

0.99

 

 

 

 

 

 

$

1.08

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average common shares:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

271.1

 

 

 

 

 

 

 

312.4

 

 

 

 

 

Diluted

 

 

277.4

 

 

 

 

 

 

 

318.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

End of period common shares outstanding

 

 

271.1

 

 

 

 

 

 

 

312.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental Financial Measures:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Margin (Note 3)

 

$

2,178

 

 

 

38.9

%

 

$

2,294

 

 

 

40.6

%

Depreciation and amortization expense

 

$

208

 

 

 

 

 

 

$

220

 

 

 

 

 

 


6

 

 

MACY’S, INC.

Consolidated Statements of Income (Unaudited) (Note 1)

(All amounts in millions except percentages and per share figures)

 

 

 

26 Weeks Ended

July 30, 2022

 

 

26 Weeks Ended

July 31, 2021

 

 

 

 

 

 

 

% to

 

 

 

 

 

 

% to

 

 

 

$

 

 

Net sales

 

 

$

 

 

Net sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

10,948

 

 

 

 

 

 

$

10,353

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit card revenues, net

 

 

395

 

 

 

3.6

%

 

 

356

 

 

 

3.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

 

(6,652

)

 

 

(60.8

%)

 

 

(6,242

)

 

 

(60.3

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

 

(3,861

)

 

 

(35.3

%)

 

 

(3,646

)

 

 

(35.2

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gains on sale of real estate

 

 

42

 

 

 

0.4

%

 

 

12

 

 

 

0.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Impairment, restructuring and other costs

 

 

(10

)

 

 

(0.1

%)

 

 

(21

)

 

 

(0.2

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

 

862

 

 

 

7.9

%

 

 

812

 

 

 

7.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefit plan income, net

 

 

14

 

 

 

 

 

 

 

32

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Settlement charges

 

 

 

 

 

 

 

 

 

(81

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

(89

)

 

 

 

 

 

 

(159

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Losses on early retirement of debt

 

 

(31

)

 

 

 

 

 

 

(14

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

756

 

 

 

 

 

 

 

590

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Federal, state and local income tax expense (Note 2)

 

 

(195

)

 

 

 

 

 

 

(142

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

561

 

 

 

 

 

 

$

448

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

2.02

 

 

 

 

 

 

$

1.44

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share

 

$

1.97

 

 

 

 

 

 

$

1.41

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average common shares:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

277.3

 

 

 

 

 

 

 

312.0

 

 

 

 

 

Diluted

 

 

284.1

 

 

 

 

 

 

 

318.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

End of period common shares outstanding

 

 

271.0

 

 

 

 

 

 

 

312.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental Financial Measures:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Margin (Note 3)

 

$

4,296

 

 

 

39.2

%

 

$

4,111

 

 

 

39.7

%

Depreciation and amortization expense

 

$

413

 

 

 

 

 

 

$

444

 

 

 

 

 

 

 


7

 

 

MACY’S, INC.

 

Consolidated Balance Sheets (Unaudited) (Note 1)

(millions)

 

 

 

July 30,

2022

 

 

January 29,

2022

 

 

July 31,

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ASSETS:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

300

 

 

$

1,712

 

 

$

2,137

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Receivables

 

 

219

 

 

 

297

 

 

 

221

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Merchandise inventories

 

 

4,610

 

 

 

4,383

 

 

 

4,298

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prepaid expenses and other current assets (Note 4)

 

 

387

 

 

 

366

 

 

 

955

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Current Assets

 

 

5,516

 

 

 

6,758

 

 

 

7,611

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property and Equipment – net

 

 

5,656

 

 

 

5,665

 

 

 

5,713

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Right of Use Assets

 

 

2,715

 

 

 

2,808

 

 

 

2,819

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill

 

 

828

 

 

 

828

 

 

 

828

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Intangible Assets – net

 

 

433

 

 

 

435

 

 

 

436

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Assets

 

 

1,194

 

 

 

1,096

 

 

 

1,010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Assets

 

$

16,342

 

 

$

17,590

 

 

$

18,417

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term debt

 

$

 

 

$

 

 

$

1,546

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Merchandise accounts payable

 

 

2,290

 

 

 

2,222

 

 

 

2,476

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable and accrued liabilities

 

 

2,395

 

 

 

3,086

 

 

 

2,660

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income taxes

 

 

23

 

 

 

108

 

 

 

18

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Current Liabilities

 

 

4,708

 

 

 

5,416

 

 

 

6,700

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-Term Debt

 

 

2,995

 

 

 

3,295

 

 

 

3,295

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-Term Lease Liabilities

 

 

3,008

 

 

 

3,098

 

 

 

3,096

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deferred Income Taxes

 

 

948

 

 

 

983

 

 

 

913

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Liabilities

 

 

1,152

 

 

 

1,177

 

 

 

1,267

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders' Equity

 

 

3,531

 

 

 

3,621

 

 

 

3,146

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Liabilities and Shareholders’ Equity

 

$

16,342

 

 

$

17,590

 

 

$

18,417

 

 

 

 


8

 

 

MACY’S, INC.

 

Consolidated Statements of Cash Flows (Unaudited) (Notes 1 and 5)

(millions)

 

 

 

26 Weeks Ended

July 30, 2022

 

 

26 Weeks Ended

July 31, 2021

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net income

 

$

561

 

 

$

448

 

Adjustments to reconcile net income to net cash provided

   by operating activities:

 

 

 

 

 

 

 

 

Impairment, restructuring and other costs

 

 

10

 

 

 

21

 

Settlement charges

 

 

 

 

 

81

 

Depreciation and amortization

 

 

413

 

 

 

444

 

Benefit plans

 

 

10

 

 

 

19

 

Stock-based compensation expense

 

 

30

 

 

 

22

 

Gains on sale of real estate

 

 

(42

)

 

 

(12

)

Deferred income taxes

 

 

(38

)

 

 

(36

)

Amortization of financing costs and premium on acquired debt

 

 

5

 

 

 

14

 

Changes in assets and liabilities:

 

 

 

 

 

 

 

 

Decrease in receivables

 

 

78

 

 

 

55

 

Increase in merchandise inventories

 

 

(227

)

 

 

(525

)

Increase in prepaid expenses and other current assets

 

 

(28

)

 

 

(41

)

Increase in merchandise accounts payable

 

 

100

 

 

 

647

 

Decrease in accounts payable and accrued liabilities

 

 

(455

)

 

 

(78

)

Increase (decrease) in current income taxes

 

 

(72

)

 

 

12

 

Change in other assets and liabilities

 

 

(42

)

 

 

(106

)

Net cash provided by operating activities

 

 

303

 

 

 

965

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Purchase of property and equipment

 

 

(378

)

 

 

(142

)

Capitalized software

 

 

(204

)

 

 

(88

)

Disposition of property and equipment

 

 

73

 

 

 

34

 

Other, net

 

 

(6

)

 

 

52

 

Net cash used by investing activities

 

 

(515

)

 

 

(144

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Debt issued

 

 

850